As many others have done, I requested freezes at Equifax, Experian, TransUnion, and Innovis. But before doing the same with ChexSystems, I wanted to submit a question to one of my online banking accounts first. I believe many bogleheads have taken advantage of the 11-month no-early-withdrawal-penalty CD option at Ally Bank. If that CD's interest rate increases above its current 1.50% before an existing CD matures, you have the option to withdraw early without penalty and open up a new account at the higher rate. However, I was wondering if a ChexSystem freeze would make this more tedious and even if such a freeze would potentially affect a more trivial renewal of an existing CD account. So I sent Ally this question and just received my response. The relevant part stated:

"A freeze on your credit report will not impact the renewal of a Certificate of Deposit account. If you place a freeze on your credit report, it will prevent a new application from completing. However, if you determine that you want to open a new account, you may contact the credit bureau to have a ?Global Lift? on your credit report so we can check your credit report. Once this is complete, you may place the freeze back on your report."

If my intent is to just ride out any CD interest rate increase and only take advantage of it when my current CD reaches maturity and I want to renew it, then I don't think the ChexSystems freeze should be an issue. If, however, I wanted to take advantage of a higher rate sooner and do an early withdrawal to open up new CD accounts at the higher rate, then I think I would have to request a temporary lift of the freeze. Just something to be aware of if any are still mulling this over. I haven't yet done a CD renewal though, so if anybody thinks I have this wrong, please chime in.

I've had a freeze at ChexSystems and the other major players for years. I have opened numerous Ally No-Penalty CDs as well as other CDs at Ally since then without issue.

The one issue I did have was when I tried to open a "savings" account. But rather than open it, I just put the money in another No-Penalty CD and called it good. (It wasn't worth the bother to temporarily unfreeze any credit accounts in my situation.)

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I get the sense that Innovis is unlike the big three and if you've frozen those, someone will not be able to open a line of credit in your name based on an Innovis credit report alone.

Since Innovis does not sell credit reports, you don’t need to be concerned about businesses making credit decisions about you based on their data. However, you still need to be concerned about the data they house about you and its accuracy. Businesses could be using this information to manage their current relationship with you, such as what’s in your wallet, how you use credit, how you pay bills, how much of your credit you use and for the purposes of pre-approved offers of credit and insurance. They use this for cross-sell and up sell purposes.https://blog.smartcredit.com/2011/06/20 ... it-bureau/

That said, if the freeze is free, why not do it? The process was easy for me (online). Still waiting for PIN via snailmail.

You are quoting an article from 6 years ago - are you sure this is still true? I always check dates in postings - things change. I ordered my credit report from Innovis at the same time I did the freeze - it's as complete as the big 3. If Innovis "does not sell credit reports" how do they stay in business?

No, I am sure of nothing. Thus...

I get the sense...

I posted the information as I found it, fwiw. I saw the date. After all, it's right there in the URL. The fact that it's 6 years old doesn't invalidate it but if you have something more current, please post it.

Btw, I froze Innovis as well as the big three and Chex.

Okay - thanks. I apologize if my questions came out sounding snarky - that wasn't my intention. I, like many others in this thread, am surprised by how hard it is to find info on Innovis. If call times were not so long I would call them up and ask some questions. I find it odd that ftc.gov doesn't talk about them when they discuss thr big 3 on theirs site. Like you - I did do a freeze with them.

Freezing Innovis is prudent for three reasons:
1. If perpetrators have difficulties with the big three credit reporting agencies, they'll target Innovis
2. Freezing Innovis is free
3. There is no need to unfreeze Innovis when applying for new credit

Victoria

If there's no need to unfreeze Innovis when applying for new credit, then what value is there in freezing at Innovis in the first place?

I'm trying to understand what Innovis actually does, and what creditor would request a report from Innovis but not the three everybody knows. I had never heard of them before all this.

The credit cards that I normally apply for use one of the top three CRAs. But a criminal may open in my name an obscure card with an obscure bank that uses Innovis. If I freeze Innovis, it will not affect me when I apply for credit cards but it will prevent a criminal from using obscure venues in my name.

Victoria

WINNER of the 2015 Boglehead Contest. |
Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

When I open a CD at a bank, *I* should be the one looking a the credit worthiness of the bank. Why does the bank care about *my* credit? The bank is the borrower here, not me! How does my poor or non-existent credit score affects the bank taking in my money? I can't think of any rational reason why it needs to run credit report on the lender. What are they afraid of? I mean why is the bank running the credit request on me when they are the borrower. Is it because that is how it has been always done?

When I open a CD at a bank, *I* should be the one looking a the credit worthiness of the bank. Why does the bank care about *my* credit? The bank is the borrower here, not me! How does my poor or non-existent credit score affects the bank taking in my money? I can't think of any rational reason why it needs to run credit report on the lender. What are they afraid of? I mean why is the bank running the credit request on me when they are the borrower. Is it because that is how it has been always done?

In this case, it's not your credit worthiness that the banks are checking for, rather it's about complying with "know your customers" rules. The banks have to make sure you aren't engaging in money laundering or something.

If, however, I wanted to take advantage of a higher rate sooner and do an early withdrawal to open up new CD accounts at the higher rate, then I think I would have to request a temporary lift of the freeze.

So, to express it in simpler terms, buying a new CD would not be possible if one has a credit freeze at Chex Systems? If true, it should be noted on our new wiki page about credit freezes.

Here is the response I got back from Ally...

Thank you for contacting Ally Bank. I am happy to assist with your Certificate of Deposit inquiry.

Please be advised, if you choose to close a No Penalty Certificate of Deposit (CD), you will receive the full principle plus interest up to the day of the closure without penalty. Please note, that this is will also cause you to lose the Loyalty reward that is added to a renewing CD.

If you choose to open a new account with a credit freeze, we will ask you during the application process to contact Trans Union at 1-800-909-8872 to request a Global Credit Lift. You will be able to place the freeze back on your credit once the soft credit check is done. Please be advised that soft hit to your credit report will not impact your credit score.

I hope you find this information helpful. We appreciate your business and want to thank you for choosing Ally Bank. If you have any additional questions, we are here for you 24 hours a day, seven days a week. Our toll free number is 1-877-247-ALLY (2559) or you can always visit us online at ally.com.

So nothing mentioned about ChexSystems, only TransUnion, when it comes to opening up a new account, presumably whether it is a savings/checkings account or a CD account though I was only asking about CDs. I think it was mentioned elsewhere that others haven't had an issue opening up new CDs with Ally despite having a credit freeze in place, so maybe take this with a grain of salt. I'm still not sure what a "Global Credit Lift" is either.

For those that ordered their Innovis report online, how many days did it take to arrive? They say you can expect it within a "few" business days. Today was the third business day and I didn't get. I figure if I don't get it by Saturday, I'll call them on Monday.

I did a search on that, and found a pdf instruction form for a temporary thaw of the big three. This is what it says at the end of the TransUnion instructions: "Please note: If you are in the state of Colorado and are requesting a lift you must ask for a “Global Lift”. This does not require third parties to have a PIN to access your credit file."

For those that ordered their Innovis report online, how many days did it take to arrive? They say you can expect it within a "few" business days. Today was the third business day and I didn't get. I figure if I don't get it by Saturday, I'll call them on Monday.

I would suggest you give it a week, all those credit bureaus are under a LOT of pressure... I requested mine, and got it within a week. The report doesn't say much, it identifies a few credit cards I use (not the whole list) and our car/home loans, and that's it. I issued an online freeze after requesting the report, and got the confirmation (and confirmation number) by mail. Overall, this worked fine.

Got a confirmation letter, and credit reportfrom Innovis on October 5. Submitted my request on Sept 22 for both Innovis and ChexSystem. I received my credit report from ChexSystem, which lists my freeze with them, but I have not received a PIN from them yet.

Is the Innovis PIN the same as the freeze confirmation number? I did not see anything specifically called a PIN in my confirmation letter.

It's also interesting that my Chex report is very minimal with regards to it's contents relative to the accounts I have had. Makes me wonder if banks really use this.

Is the Innovis PIN the same as the freeze confirmation number? I did not see anything specifically called a PIN in my confirmation letter.

It's also interesting that my Chex report is very minimal with regards to it's contents relative to the accounts I have had. Makes me wonder if banks really use this.

Thanks.

Yes, the Innovis PIN is the same as the freeze confirmation number. Per the website:

A Security Freeze will be placed on your Innovis Credit Report after your request has been received and your identity has been verified. You will receive a confirmation letter by mail that contains a 10-digit Security Freeze Confirmation Number. You can request a replacement Security Freeze Confirmation Number or a lift pin online, by phone, or by mail.

In regards to Chexsystems, only negative information is reported. Per the website:

ChexSystems is a consumer reporting agency that gives information to banks and credit unions when they’re deciding how risky a potential customer could be. Think about your current and any former banks you have held accounts with. Did you have any history of bounced checks or outstanding overdraft fees? Or maybe you simply stopped using the account due to a zero balance but never officially closed the account? Those are examples of negative behaviors that banks would report to ChexSystems. An unfavorable report on ChexSystems may prevent you from opening a new bank account or savings account, thus delaying your journey to financial stability.

Our personal credit history has been accumulated by others without our permission & is sold to others-again without our permission. In the majority of the states, if we want to protect this info we are charged a fee. A fee to protect something we never agreed for them to have - something that has a major impact on the quality of life for us & our families!

In Texas that fee is $10. If we want to unfreeze in order to qualify for a loan, in Texas its no charge, but after the loan process, we must again pay $10 to re-freeze, for a total of $20. Also note that consumers in some states pay more, some pay less, and some, because of the particular state's laws, no fees. Why do they charge me but not others? 'Cuz they can.

Now this freeze doesnt stop others from accessing our credit files such as the PRE-APPROVED credit card vultures, only to ensure that no loans are issued.

This is extortion....but, now these credit aggregating agencies are growing, no longer are there just 3, but 5 and the question is, whats to stop the number from growing to 10, 20, more? We are prey.

If you become a victim of identity theft you are ruined. These thugs can jack with your income tax, medical, social security, banking, credit cards....the list is endless- and you cannot overcome the damage.

The mafia calls this a protection racket. It has to stop. Ive contacted my state representative & intend to contact my congressman & senator. You should too.

The Consumer Financial Protection Bureau (CFPB) publishes a comprehensive list which includes the three largest nationwide consumer reporting companies (Equifax, Experian, Transunion) and several specialty reporting companies that focus on certain market areas and consumer segments. The list is available here: List of consumer reporting companies (2016)

Note that credit bureaus aren't exactly the only companies collecting personal information and reselling it nowadays. Many online and smartphone applications do exactly that. Even a game like Angry Birds does it, which is a little hard to swallow... I don't disagree with your anger, but there isn't going to go away in our modern interconnected world.